CFG Social Security & Government Benefits for Older Adults 3

Question 1

The Social Security 'earnings test' applies to beneficiaries who claim benefits before full retirement age. What happens to the withheld benefits?

Accepted Answer

They are credited back and increase the monthly benefit at full retirement age

Answer

Benefits withheld due to the earnings test are credited back to the beneficiary in the form of a higher monthly benefit once they reach full retirement age.

Question 2

What is the Social Security combined income threshold above which up to 85% of benefits may be subject to federal income tax for a single filer?

Accepted Answer

$34,000

Answer

For single filers with combined income above $34,000, up to 85% of Social Security benefits may be subject to federal income tax.

Question 3

Which government program specifically provides federal health insurance coverage to individuals with disabilities who have received Social Security Disability Insurance (SSDI) for 24 months?

Accepted Answer

Medicare

Answer

After receiving SSDI for 24 months, disabled individuals automatically qualify for Medicare regardless of age.

Question 4

When a divorced individual claims Social Security spousal benefits based on an ex-spouse's record, which condition must be met?

Accepted Answer

The marriage must have lasted at least 10 years

Answer

To claim divorced spousal benefits, the marriage must have lasted at least 10 years, the claimant must be unmarried, and both parties must be at least age 62.

Question 5

The 'file and suspend' Social Security strategy was largely eliminated by the Bipartisan Budget Act of 2015. What restriction did this act impose?

Accepted Answer

A spouse cannot claim benefits on a suspended worker's record

Answer

Under the Bipartisan Budget Act of 2015, when a worker suspends benefits, all benefits based on that worker's record — including spousal benefits — are also suspended.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG Social Security & Government Benefits for Older Adults 3